Baby Boomer Survival Guide, Second Edition

Barbara Rockefeller is founder of foreign exchange forecasting firm Rockefeller Treasury Services, has over twenty years of financial institution experience in all aspects of foreign exchange, including trading, analysis, and risk management. She has a Bachelor’s Degree from Reed College in Portland, OR, and a Master’s in International Affairs from Columbia University in New York City. Rockefeller has authored four books, and writes a monthly column for Currency Trader, as well as articles and book reviews for Active Trader and Stocks, Futures, & Options. She lives and works in the Washington DC metro area.https://rts-forex.com/

• Baby Boomer Survival Guide, Second Edition: Live, Prosper, and Thrive in Your RetirementTable of ContentsIntroduction..................................................................xvPART I — Financial Decisions by Barbara RockefellerChapter 1......................................................................3Getting Started: Taking StockYou are Not Alone...............................................5Baby Boomer Worries.........................................5Will You Outlive Your Savings?...........................6How Much Do You Need?.....................................9The Monster under the Bed: Long-Term Care......11Homelessness.....................................................12The Solution.......................................................15Calculating the Cost of Retirement......................19Planning..............................................................20Chapter 2.......................................................................25Retirement AgeLongevity.............................................................25What to Do With Your Extra Years........................26Retiring Early Is Dangerous to Your Health..........28Who Do You Want to Become?..............................30Working After Retirement.....................................30Changing Jobs Before Retirement.........................32Starting Your Own Business after Retirement.......35Resources.............................................................38Chapter 3...............................................................................41Social SecurityThe Real Social Security Problem.................................44Final Debunking...........................................................45How it Works in Practice..............................................46How Your Social Security Benefit is Calculated.............47The Best Age to Apply..................................................50Monthly Benefits at Retirement Age.............................51Cumulative Benefits by Retirement Start Age...............51The Breakeven.............................................................51Spousal Benefit............................................................52If You Are Single..........................................................53Cost-of-Living Adjustments (COLA)..............................56Social Security Optimization Strategies........................5862/70 Strategy...................................................58Double Dipping...................................................58File and Suspend................................................59Start-Over Strategy............................................59Working and Social Security.........................................60Taxing Social Security...................................................61Social Security Disability Benefit Claims on the Rise.....62Other Aspects of Social Security...................................63Chapter 4................................................................................67A Place to Call Home in Your Golden Years Homeownership vs. “Real Estate”.................................68Cashing Out..................................................................70Reverse Mortgages.......................................................72How Do Reverse Mortgages Work?......................72A Family Affair..............................................................74Downsizing...................................................................75Managing the Real Estate Broker..................................76Renting vs. Buying........................................................79Boomer Mobility............................................................81On Retiring Abroad........................................................87So You’re Determined to Take The Plunge.....................89Real Estate/Housing............................................89Healthcare...........................................................90Crime and Violence..............................................91Chapter 5.................................................................................95InheritanceWhy Do We Have Inheritance and Estate Taxes?............96Federal Estate Tax..........................................................99Portability......................................................................100Here’s How It Works......................................................100State Inheritance Taxes.................................................101The Gift Tax and Exemptions..........................................102Why You Should Think About Inheritance......................103Chapter 6.................................................................................107Wills and TrustsWhy Do People Fail to Prepare for the Inevitable?..........108Dying Without a Will.......................................................108The Essence of a Will......................................................111Writing a Will..................................................................111Changing and Revoking Your Will....................................113Contesting a Will.............................................................115Do You Need a Living Trust, Too?....................................117What is a Revocable Living Trust?.........................117Advantages of a Living Trust.................................119Disadvantages of a Living Trust.............................120Special Trust Cases................................................121Generation-Skipping Trusts (GST)...................................122Credit Shelter Trust (CST)................................................122Charitable Remainder Trusts............................................123Private Foundations.........................................................124Fiduciary Duty..................................................................125Chapter 7....................................................................................129Trading and Investing: Rules for SuccessRule 1: Achieve Basic Financial Literacy............................131Rule 2: It’s Not Savings Unless It’s a Savings Account......133Rule 3: Only Greater Risk Boosts Return...........................134Rule 4: Leverage Boosts Return but Increases Risk...........135Rule 5: Seeking Risk On Purpose.......................................137Rule 6: Avoid Catastrophic Losses, Part 1..........................140Rule 7: Avoid Catastrophic Losses, Part 2..........................142Rule 8: Learn to Look at Charts.........................................144Rule 9: Conventional Wisdom is (Probably) Bunk..............145Rule 10: Options................................................................146Rule 11: Avoid Fraud and Scams........................................151Avoiding Bad Investments:Advice from Credit Analysts.....................................154Chapter 8.....................................................................................157Financial PlanningPlanning vs. Advising.........................................................159Credentials.........................................................................160Do Your Homework............................................................162Retirement Investment Mentors.........................................165Retirement Coaches............................................................165Components of a Retirement Plan.......................................166Measuring Outgo.................................................................166Measuring Income...............................................................169Putting Income and Outgo Together....................................170The 4 Percent Rule...............................................................171Part II — Considerations for Quality of Life by Nick J. TateChapter 9...............................................................................................................175The Long and Winding Road to Long-Term Care7 Key Questions and Answers to Long-Term Care.........................................177No. 1: What Is Long-Term Care?.........................................................178No. 2: Is Such Care Pricey?.................................................................178No. 3: How Much Do Long-Term Insurance Policies Cost?...................179No. 4: Is Insurance The Only Option?.................................................180No. 5: Won’t Medicare Pay for Some Long-Term Care?........................182No. 6: What about Medicaid?..............................................................183No 7: How Can You Tell if You’re Likely to Need Long-Term Care?......184Chapter 10..............................................................................................................................................................................187The Silver TsunamiThe Politics of Medicare.................................................................................................................................................189The IPAB: “Death Panel” or Expert Board of Directors?................................................................................................ 191“Premium Support” Payments:Voucher Program?...............................................................................................................................................192Coming up with a Medicare Game Plan...........................................................................................................................192No. 1: Who Is Covered by Medicare?....................................................................................................................193No. 2: What Are the Primary Elements of Medicare?.............................................................................................193No. 3: Do You Even Need Medicare?.....................................................................................................................196No. 4: Should You Stick With Your Current Medicare Plan?...................................................................................197No. 5: What Type of Plan Works Best for You and Your Budget?...........................................................................197No. 6: Do You Qualify for a Discount?...................................................................................................................198No. 7: When Can You Sign Up?.............................................................................................................................198No. 8: Are There Certain Rules and Restrictions for First-Time Enrollees?............................................................199No. 9: What If You Don’t Like Your Plan?..................................... 199No. 10: What Is the “Donut Hole” in Prescription Drug Coverage, and Is It Really Closing Under Obamacare?.....199No. 11: What Is Supplemental Medicare Coverage and Do You Need It?...............................................................200No. 12: Where Can You Get Unbiased Help and Information?................................................................................203No. 13: Will Cuts To Medicare Advantage Doom the Program?..............................................................................204No. 14: Is a Stand-Alone Medicare Part D Drug Plan Right For You?......................................................................206No. 15: Medicare Scams And How To Avoid Them.................................................................................................209Chapter 11........................................................................................................................................................................213Thinking Through the UnthinkableNo. 1: What Is a Living Will?....................................................................................................................................215No. 2: What Is a Healthcare Proxy?.........................................................................................................................216No. 3: Can Your Medical POA Be a Non-Relative?.....................................................................................................217No. 4: What Treatments Would You Want — and Not Want?.....................................................................................218No. 5: Why Do You Need to Put It in Writing?..........................................................................................................220No. 6: Should You Update Your Advance Directives Periodically?.............................................................................221No. 7: Can Your Healthcare-Related Documents Be Invalidated or Challenged as Faulty?........................................222No. 8: Can Your Doctor Refuse Any of Your Advance Directives?..............................................................................222No. 9: Are There Other Documents You Might Need to Be Sure Your Wishes Are Carried Out After You’re Gone?.....222No. 10: How Can You Help an Older Parent or Relative Make Similar Plans?.............................................................223Chapter 12........................................................................................................227The Lifelong Journey to HealthData from the Experts.............................................................................228Some Hopeful Signs................................................................................231Prescriptions for Health..........................................................................232Screening Recommendations for Men and Women of All Ages.................233Avoid Tobacco...............................................................................233Limit Alcohol.................................................................................233Maintain a Healthy Weight............................................................233Eat Healthy...................................................................................234Get Moving....................................................................................234The “Goldilocks Effect” for Heart Rate...........................................235Get Regular Physical Exams..........................................................236Do Something to Manage Stress and Get a Good Night’s Sleep......236Screening Recommendations As You Age................................................237Men: 40 and Older.........................................................................237Women: 40 and Older....................................................................238Both sexes: 40 and Older...............................................................239Men: 50 to 65.................................................................................239Women: 50 to 65............................................................................239Both sexes: 50 to 65.......................................................................240Men and Women: Over 65...............................................................241Beyond the “Big C”...................................................................................241Minding Your Mental Health......................................................................2445 Rules to Live By.....................................................................................245No 1: Exercise.................................................................................245No 2: Weight Control.......................................................................247No 3: Mental Challenges..................................................................248No 4: Social Interactions.................................................................251No 5: Cut Down onStress.................................................................252Beware of Bogus Cancer Cures..................................................................255Will You Live to 100?.................................................................................258Move more, eat less.........................................................................258Banish stress...................................................................................259Rest up............................................................................................259Follow your bliss..............................................................................259Learn new things.............................................................................259Chapter 13.................................................................................................................................263** NEW Healthcare: What Boomers Need to KnowWhat Are the Smartest Ways to Budget and Plan for Healthcare Costs in Retirement?.....272Explore Health Savings Accounts......................................................................................273Consider Long-Term Care Insurance.................................................................................274Resolve to Stay Healthy....................................................................................................274Manage Any Chronic Conditions You Have.........................................................................274Become a Comparison Health Shopper..............................................................................274Itemize Medical Deductions on Your Taxes........................................................................275Save on Drug Costs...........................................................................................................275Investigate Insurance Rebates..........................................................................................275Look into Employer Wellness Programs.............................................................................276Other Savings Options.......................................................................................................276Healthcare Spending Skyrocketing.....................................................................................276Avoiding Scams.................................................................................................................278Fraudulent O Websites......................................................................................................278Medicare Scare Ploys.........................................................................................................279Chapter 14...................................................................................................................................281Quality of Life by Barbara Rockefeller and Nick J. TateOne Size Does Not Fit All...................................................................................................286Best Places to Live............................................................................................................287Staying Connected............................................................................................................288Volunteer..........................................................................................................................289Groups and clubs..............................................................................................................290Don’t Neglect Your Physical Health...................................................................................290Dating over 50..................................................................................................................291Adopt a pet.......................................................................................................................291Time Well-Spent...............................................................................................................292Living Long and Healthy....................................................................................................293Lessons from Centenarians...............................................................................................293Strive for Balance..............................................................................................................296Afterword....................................................................................................................................299Appendix A:.................................................................................................................................301Unbiased ResourcesState Health Insurance Assistance Programs (SHIP) by State............................................302Patient Advocates, Insurance Ombudsmen by State...........................................................309Appendix B......................................................................321Assisted-Living Facilities and Nursing HomesHow to Choose an Assisted-Living Facility..............321Compare Assisted Living to Home Care.........321Research and Visit Prospective Facilities......322Calculate Costs.............................................323Top 40 Assisted-Living Companies..........................323How to Choose a Nursing Home..............................328Do Your Homework.......................................328Visit Multiple Times.......................................328Ask Questions about What You See...............329Nation’s Best Nursing Homes..................................329Additional Resources for Long-Term Care................335Index................................................................................337